According to the new Keynesian school of thought, fiscal policy is a completely ineffective tool in combating supply-side shocks

The economic way of thinking suggests that if the government imposed a $500 tax on owners of red automobiles,

a. fewer red automobiles would be produced and sold. b. more red automobiles would be produced and sold. c. there would be no change in the number of red automobiles produced and sold. d. red automobiles would cease to exist.

If a binding price floor is imposed on the video game market, then

a. the quantity of video games demanded will decrease. b. the quantity of video games supplied will increase. c. a surplus of video games will develop. d. All of the above are correct.